from bloomberg headquarters in new york, i'm mark crumpton. this is "bottom line." today, scotland's first minister follows -- resigns following the no vote for independence. lining up and waiting for a chance at an iphone 6. to our viewers in the united states and those of you joining us around the world, welcome.

we have coverage of the stories making headlines today. ,he debut of the iphone 6 leslie picker follows alibaba from the new york stock exchange and we begin in london with michael mckee as scotland votes no to independence. how do we explain the larger than expected no margin? >> pollsters can't explain it except to point out throughout the season, the no's held a commanding lead. few days yes seemed to pull forward and that added to the drama of the election and sent politicians scrambling. it may have never been that close. it was clouded by the fact pollsters say they could not trust the results of their own surveys because of the kind of electorate. 85%.entioned the turnout, and it galvanized the voters of scotland and it resulted in the

end of a career, the first minister of scotland, the man drive fore independence did drive today. ifcourse if they had one, the independent scottish vote had gone their way, it would have been david cameron resigning. instead he states in office. we have some breaking news, the queen has finally weighed in. and she nowilent says the election is over, the people have spoken and we are glad to have scotland in the fold and we should remember all the reasons we love scotland. >> michael, the queen says the election is over, but that does not mean the debate is over. what happens next? couple ofthe last weeks after the polls suggested the yes vote my have a chance, the politicians in london

promised to give scotland a lot more power over its own purse if it rejected the referendum and it didn't. so david cameron said he would move forward with a plan to give scotland more control over taxing and spending and social programs. he said it is time to give the same powers to northern ireland, wales, and england. so he is promising and completely new kind of government for the united kingdom. that is going to be a tough sell and a major change even if scotland stays in the union. >> what are analysts saying? was thepeople think it older voter, the person who had been around for some time. there are 32 counties and scrub and -- in scotland. those have the youth vote. 16-year-olds could vote. older people retained their affection for england and the

rest of the united kingdom and felt they would not be better off with a country on their own, even if they felt scottish. fromke mckee, joining us london. thank you. more on the vote. running me is jeremy schapiro from brookings. welcome to "bottom line. " heard, overjust the past few weeks, polls in scotland showed the independence vote would be close. that turned out not to be the case. what happened? why did they choose security of unity overdependence? know.course we don't there was not any exit polling. we do not have a great inside. we can make some educated guesses and it seems the emotional case that was made for scottish independence was overcome by some hardheaded realism about the difficulties

an independent scotland would have. people were afraid to take the leap. >> what does the referendum's rejection mean for the establishment in britain besides the obvious? ell, in the first instance, it is a huge relief. dealing with an independent scotland, dealing with the divorce, would have been a massive headache, to put it mildly, for the british and it kurdish politics for a decade. there are some serious challenges because this has demonstrated there is a tremendous amount of frustration runs theway london country. it is not just about scotland and england. it is about a capital city which has become alienated from its hinterland. that is what you see in david cameron's announcement today, there is going to have to be a

devolution of power away from of theand toward all different provinces, if they're going to maintain the united kingdom. >> so the yes vote to did to lose at the ballot box. did it win in terms of shaking up the status quo? is scotland negotiating from a position of strength? >> yeah, i think that is the case. promises were made in those last weeks which will have to be fulfilled. partiese major london made those promises to devolve new powers to scotland and i think scotland is going to end up getting almost everything it wanted out of independence from this process. i think also, this is a necessary move for the united kingdom. these types of changes were long in coming and the important for scotland and also for england, which is becoming frustrated

with the way the united kingdom is run. >> if the yes vote had 's oilled, would scotland reserves been enough to drive an independent economy? >> luckily we do not have to find out. i think fundamentally they would have been enough. there are a lot of small countries in europe and because they exist within the european union, which protects them in a , it is more or less possible for any economically sized unit in europe,day unit -- which is nice. there would have been some serious problems than they think scotland would not have been as prosperous as it can be in the united kingdom. writes thatgue something rare was achieved in

the independence vote. they asked a question that in most parts of the world at times results in war. what signal was sent to other parts of the world? >> well, an important signal was sent that there can be a democratic process that allows for this type of succession. this is not much of an open option in most parts of the world. i think it is going to have a big impact in europe, particularly spain in the first instance, where people are going to say we want the right to make this decision. the answer may be yes, it may be no, but this is a democratic right. this process is going to push people in that direction. >> jeremy schapiro at brookings joining us from washington. thanks so much for your time and

perspective. the other big stories on this friday, i'll obama -- nearly surging raising $22 billion in its ipo. that makes it larger than amazon and ebay combined. alibaba group chairman and founder jack ma spoke with emily chang on the floor of the new york stock exchange. everybody should have a dream. what if that dream comes true? ago theieve 15 years internet is going to change china and improve the world. whether you believe for not, somebody will succeed. if you don't work hard and work every day, nobody has a chance. i never knew we would be here today. >> joining me now from the new

york stock exchange, leslie picker, she has been following the story. alibaba's ipo is trading at around $90. tell us about investor demand. >> the demand was certainly there. funds from these banks, which is more than 50% of the allocation. that is a very concentrated deal. if you did not get in at the wantnight, if you really access to this company, the most volume will be traded as a public company. >> jack moss spoke with emily chang. tell us about jack ma and his evolution from where he began and where he is now heading up this company with the largest ipo. >> we are talking about an english teacher who started alibaba in his apartment 15

years ago. now he is the richest man in china. on the floor of the new york stock exchange, the biggest ipo in the u.s. ever. potentially the largest in the world. this man has gone so far. everyone who met him says he is one of the most charismatic figures they have ever met. they see him as a visionary. he is compared to steve jobs. he is someone to keep an eye on. >> alibaba has profited from china's rising consumer class. how has that helped it dominate the industry? consumer class is massive. about 600 million people in china that are using the internet. 1.3 billion people in china. that could be using the internet. growth potential and it has become a country that has surged over 15 years ali baba

has been in existence. they have been able to ride that increase in consumer activity online as the consumer population in china is used to shopping online much more so likeshopping in a retailer in the u.s. that transition came naturally in china. it was a much quicker transition in that respect. alibaba was there the beginning and has been able to capitalize the hallway. >> all right, leslie picker joining me from the floor of the new york stock exchange. thanks so much. preview of the g 20 meeting. we will look at the agenda as the leaders gather in australia. "bottom line" continues in just a moment. ♪

outbreak could spread to hundreds of thousands more people by the end of

january. this is according to an estimate by the u.s. center for disease control and prevention. at worst-case scenario 550,000 or more infections. the projection assumes no additional aid or intervention by governments or relief agencies. the official report comes out next week. the group of 20 finance ministers is meeting in australia on saturday. they face pressure to increase dimth in the face of a global outlook. john lipsky is the former managing director of the imf and is currently a visiting scholar at the johns hopkins school of international studies and he joins me from washington. welcome to "bottom line." always a pleasure. sir, what is the top priority right now? >> certainly, remember this preparation for

the november 15 and 16 summit of the g 20 leaders. aey are pledged to prepare set of policies that will produce an increased acceleration of growth, specifically that will add 2% to global growth over five years. the latest news on global growth has been disappointing. there will be increasing focus on the specifics of what they can produce in terms of a coordinated and coherent plan to strengthen the global output. topics for this weekend include taxes and financial regulation. the mostow one of debated issues in the united states involves inversion, where businesses move their address to other countries to cut tax bills. inversions are not illegal, but are they a threat to growth and should they be dealt with as part of a comprehensive tax reform agenda? there is an agenda

being formed. once again, there is a pledge by the ministers and governors who have a plan ready for the leaders summit in november. baseis under the rubric of erosion and profit shifting. the idea that taxes should be paid inxes should be the jurisdiction in which they are earned. some is obviously ambiguity as to how you define exactly that concept. anre is going to be international negotiation around how to do this in a way that is viewed as fair and equitable and eliminate the sovereign right of individual countries to decide their own tax system. it is a complicated but important issue. whether they can come up with a plan remains to be seen.

>> the australian treasurer says it is time to end the overregulation and financial and banking markets implemented in the wake of the global financial crisis. how stable is the system and how do you remove impediments to growth and acknowledge and prevent excessive risk? those are important and not easy questions. in broad terms, there is an agreement following the global hadis the financial system been undercapitalized. there has been an agreement to increase the capitalization of important institutions. there is an agreement the perimeter of regulation needed to be refined so that systemically important institutions did not fall outside of the regulatory regime. there was an agreement and then needs to be a process to eliminate too big to fail and the specifics before

the leaders, in theory there is a commitment to produce a plan capital capacity of the institutions. this is complicated. it is not clear there will be an agreement. in broad terms, there has been progress in this area since the crisis. >> you were talking about global growth and used the word disappointing. kim was speaking to reporters and said u.s. preparations for raising interest rates are slowing growth in emerging markets and drying the way capital. what impact is the u.s. federally -- drying a way capital. what impact is the u.s. having? ell, hopefully markets will take their cues from the

specifics of individual economies as well as international considerations. this has to be seen in broad terms. medium-termer the what is in the interest of the emerging economies as well as isnts -- advanced economies that growth is strengthened and occurs in a balanced way. performingonomy is the strongest of the advanced economies. as we approach capacity limits and eventually, in the u.s. economy, monetary policy will have to react. this does not mean it is in the interest of emerging economies if the federal reserve for to allow him the u.s. economy to grow in an unbalanced way. not necessarily a simple question. obviously the fed is going to

follow its mandate to produce maximum growth consistent with price stability in the united states. lipsky, former managing director of the international monetary fund, currently a visiting scholar at the johns hopkins school of studies. dr. lipsky, always a pleasure to have you on the broadcast. thanks for your perspective. next, and on the market check for this friday. "bottom line" returns after a quick break. ♪

>> welcome back to "bottom line ." we are approaching 26 minutes

past the hour which means bloomberg television is on the markets. matt miller is standing by. caught up ont you stocks today. not of a heck of a lot of action in the s&p and the dow. almost no change right now, the dow up 1/10 of 1%. where we saw the action to the downside. it had been down half a percent or more earlier in the day. interesting to watch it on the day alibaba goes public. a couple of individual stocks, alibaba, shares are surging on the first day of trading. a 36% increase of their offer price and they have a price right now of 92.64. let's check out oracle, larry ellison announced he is stepping down as ceo. has it really been 50 years?

tok hurd was named as ceo replace larry. shares are falling by the most in more than a year on the news. and mcdonald's, raised its dividend by 5%. that is lower than analysts expected. ♪

welcome back to the second half-hour of "bottom line." i'm mark crumpton. thanks for joining us. home depot has completed its investigation of its data breach and found 56 million payment cards have been compromised. it is not changing its sales forecast. julie hyman covers the retailers for us and joins me now. why not change the forecast? ofthere are a couple particularities of this data breach that are making it have less of an impact than target. the timingl, we have

of the breach. it was between april and september. , it is not necessarily happened prior, but the revelation was passed to the season when you tend to have a lot of people doing home improvement projects. theet's happened during holidays. home depot came forward quickly. they did the investigation promptly. and you do have this sense of data breach fatigue. now is this expectation this is a risk when you are shopping for to much anywhere. there is this idea it can happen anywhere. depotas loaded at a home store and then infected the system that way. you are looking at a couple of examples we have seen, but they do seem to be becoming more and more common. or are retailers in terms of implementing new technology

-- where are retailers in terms of implementing new technology? chip that is in your card. that is supposed to be more secure. the credit card industry wants all retailers to implement this technology by next october. it is going to be costly. it is not clear if they will be ready in time according to one consultant i spoke to. however, that should improve things. home depot, for example, already has these terminals that have in thenverted and is process of doing it in the u.s. target has converted the terminals. it is all about the chain. you have to have a card that is enabled. we are along the line of that process happening. >> as you know, if you have been

following bloomberg television, alibaba is off and running. 92.70, 36%ed at higher than the ipo pricing. my colleague trish regan joins me now. we use the word surge, but i think that is a puny word. >> it is incredible. there is a lot of excitement. we've been waiting for this quite some time. it is the biggest ipo in history. really monumental. it says a lot too about chinese entrepreneurship. symbol is seen as a throughout that world. he has become the richest man in china as a result of this. he started this company back in 1999 out of his apartment. a former teacher who has gone on to be an incredible success story. people are excited.

they are buying into his vision chinaying into this idea has the potential, with its one billion plus people, to really change e-commerce. >> big investors were stepping up. >> a lot of buying from big investors, they went on a pretty well-received roadshow, shall we say. ats was pricing last night today.ng out at 92.70 quite a performance. we will see how it holds on. 92.50 right now. up from last nine. >> and that hits keep on coming. >> we are going to do a lot of alibaba, talking about it with brian blair. and also, here with us on set, we're going to have bret taylor, former cto at facebook.

a lot of exciting stuff. i will see you at 3:00 p.m. up, doing more megadeals. we will have details when "bottom line" continues in just a moment. ♪

>> it is time for today's latin america report. the broadbandl by unit for about $9 billion.

the move is designed to increase its challenge to competitors, including america mobile. cash, and a receive 10% holding in the business, and a stake in telecom italia. telefonica will finance the purchase with an increase by its brazilian business. citibank told a court it faces grave sanctions from argentina if it follows an order blocking it from making payments of $8.4 billion of the country's bonds. they were barred from fording a $5 million interest payment due september 30 two the bondholders. if it doesn't pay, citibank claims the branch faces criminal and civil penalties including the loss of its banking license and takeover by argentina. the bank said it would comply with the judge's order.

the court did not rule on the appeal. that is your latin america report for this friday. wall street banks are telling companies credit markets can fund megadeals. verizon generated 265 milliont dollars for the underwriters, jpmorgan and barclays. and the now they are busy pitching clients to do more acquisitions. we have been following this story. main page, what is it? arthey are calling it the of the possible. it means they are saying they can get a hundred billion dollars of financing for a made a deal. raised $49 billion in bonds in the u.s. this time they are saying if we look at the u.s. and europe, we could do $20 billion in loans and there you have it. >> the question is, is demand

their? >> interest rates are going to stay low for a little while longer. investors have a lot of money to put to work. they are looking for products. the question is, how long will that last? we heard people were putting in orders of a hundred billion dollars. me ators are saying ring deal i can invest in. >> what kind of deals are we talking about? about 10 during deals. it is a friday. people are talking about i and hazardous with sab miller. glencore buying rio tinto. at&t and vodafone. that has been talked about for a while. >> they are finding capital markets to be wide open right now. there have to be potential hurdles. what are they? >> of course.

antitrust and also a lot of mergers don't work out that well because companies find they don't integrate as well. financing, it is about timing. people made a lot of money. 124 today.ng at the pricing is attractive. >> sometimes when we have guests economists, we talk about how the geopolitical factors are weighing on this. are there any that could throw more hurdles like this? >> at the moment, we are talking about investing in great companies in places like the u.s. and europe. so the geopolitical factor does not really play into it. the bond markets have shrugged off a lot of issues.

>> between now and the end of the year, are we likely to see more of these deals? wouldn't that be great? and acquisitions, $2 trillion of deals that are announced. that is the highest volume since 2007. companies are not finding growth in the economy. they are trying to buy back. in that sense companies are looking at it and they think there is a small window in which they can get a deal done before rates go up. about the we talk small window, time between now and when the consensus is next year when the u.s. federal reserve is going to move on interest rates. >> now you sound like a banker. [laughter] >> thank you so much. a pleasure to have you on. continues, weine" are going to take a look at encore, your guide to the newsmakers of the week.

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tonight, michael morel talks about the escalating conflicts in iraq and syria tonight at 8:00 and 10:00 p.m. new york time on bloomberg television. while the business world is zeroed in on alibaba, the public is focused on the in-store release of the iphone 6. joining me now is shelby holliday who was at the flagship store in new york city this morning talking to the crowd. crowd is an understatement. talk to us about the hype. how does it compare to the past? the firsthere when guy came out with the first phone. he had been there at every launch. he thinks it is the most hyped he has seen, which is a big deal. we also saw as many as 1000

people in the rain in london, similar lines in tokyo, chinese people go to hong kong to get phones. so there is a ton of hype internationally. there is one place we are not, china. that is because it has been reported in american and chinese news apple did not obtain the right certification for the government in time for the launch. that is a huge setback for apple because some say this weekend might not break sales records and the iphone 5 models, it might not beat those. which would be the first time he did not outdo previous models. >> what can we expect a long-term? >> long-term sales really matter. about more than half of their revenue comes from the iphone. it is a huge driver for apple. the iphone, the good news is it will be available in 150

countries by the end of the year. the uncertainty right now revolves around china and apple's stock is down today. a lot of people think that is why. it was expected to be there by the end of the year. there was news today china might not get the phone in 2014. that is causing a lot of concern and long-term sales are looking ok, but the china peace, china is expected to sell about 15% of the phones. >> ok, as we mentioned, you were at the flagship store. talk to us about the energy of the crowd. >> i was laughing. it is the early morning. it was freezing cold. the people cheering where the apple employees. the crowd barricaded in, they were excited. i took the pushing to be excitement, not violence. the cheering game from the employees and then the first people who got the phones.

toi want to circle back something you said making the comparison between the iphone 6 and the iphone 5. you talked to the guy who came is there anything that is really different between the phones? >> a lot of people are excited about the big screen. and actually the iphone 6 plus is selling out. also apple pay and the ability to pay with your iphone and to be able to sync it with your watch. there are new features it will have. generally people like new things and of course they like to be the first person. they will be on the cover of newspapers tomorrow. right, shelby holliday covering the apple iphone 6 launch. it is friday. let's bring you a look back at the most notable newsmakers on "bottom line." have been providing

ukraine antitank weapons, antiaircraft weapons. in fact, russia is conducting a war against ukraine. are cynicalicans about trade. they believe we have come out on losing propositions and that we have swapped cheaper t-shirts and laptops for jobs going elsewhere. is onelity is our market of the most mature and successful in the world. we have a chance to help other countries create jobs here as they begin to build their economy. >> the weakening of the peso is good news. it is important for increasing our competitiveness. our currency was too strong. resulted in a situation that made it difficult for producers to compete. is weakening of the peso

healthy for the economy. >> not anymore because of criminals. a lot of ransom attacks. i'm expecting maybe a smart tv. >> nfl commissioner roger goodell has made his first public statement about the rash of nfl players involved in domestic violence. he is about to hold a news conference scheduled for the top of the hour. he will address the conduct policy. it is facing criticism it has not acted quickly or emphatically enough concerning the demand stick abuse cases. stay with us. another check of the market movers is on the other side of the break. ♪

>> get the latest headline streaming on your tablet and on bloomberg.com. that does it for this edition of "bottom line." i'm mark crumpton. thanks for joining us. on the markets is next. have a great weekend. i will see you on monday. is 56 minutes past the

hour which means bloomberg television on the markets. first on where stocks are trading. there has not been a lot of movement on the s&p and dow today. you are starting to see that pick up a little bit over the last hour, hour and a half. 2013 levels now. the dow is up a quarter of 1%. it had been unchanged on morning. and the nasdaq is recovering as well, only down about 10 points. take a look at alibaba. obviously we have been focusing on it all day. you can see it is trading at 91.30. the ipo price was $68. richer manan even than the incredibly rich man he was at the ipo. that ipo shining a light on how etf's work, indexes, what country a company is from and how those things mixed together.

it can get confusing. here to tell us about the etf side of it is our guru here. let me clarify, if this is a chinese company, but it's primary listing is on a u.s. exchange. so will some etf's consider it a u.s. company? biges, but none of the ones. it falls into a no man's land with the big index providers. --you list all of the intent etf's, it will not be in any with over a billion dollars. not going to be there. it is ironic. you've got to go downtown to the smaller, and jerry etf to get an exposure to alibaba. the u.s. ipo etf, they actually changed their rules so alibaba will enter in

tonight. >> they changed the rules to accommodate alibaba. >> absolutely. indices, you do not know the name, some of these are new that have these adjustable rules. they are ready to be adaptable for something like this. the renaissance ipo etf will also have it after the fifth trading day. you are talking about very soon, very fast. straight, to get this the first trust u.s. ipo is fpx. sharesll have alibaba incorporated into their etf as of the end of day today? >> monday. >> renaissance, ipo will have within five days. so they won't capture the appreciation we saw this morning. >> no. they try to give it time to settle.

, will china area, kweb have the fastest. so on the 12th day, interesting fact on this one, it tracks the new school index. 34 of the 42 holdings are companies that are china companies in the u.s. 83% of the etf is the situation. alibaba is another one in a long line of china tech. >> interesting it won't be in the s&p 500, even though it's primary listing is in the u.s. thanks very much. we are going to take a break. "street smart" is next. ♪

to the most important hour of the session. alibaba is climbing fast on their first day of trading. jack ma is not wasting time in new york. he is meeting with 20 of the most powerful men and women on wall street and one shareholder says it trading on the nyse is alibaba's chance to make an impact outside china. >> alibaba